Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Making Money is Main Objective -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (1995)	3/5/2002 1:41:30 PM
From: Softechie	Read Replies (1) \| Respond to of 2155

Charting Indicators: Unemployment Is Gaining Too 05 Mar 10:40 By Stephen Cox, CMT A Dow Jones Newswires Column NEW YORK (Dow Jones)--U.S. economic indicators have been firming in recent weeks, helping many economists make the case for a full recovery in the near term. In particular, U.S. real gross domestic product in 2001 grew by a solid 1.4% annually. But the other half of the economy, if you will, is employment and that indicator has been falling - over the past two years, in fact. The median consensus of economists calls for a February unemployment rate of 5.7%, and the chart agrees that 5.7% is a reasonable figure. However, unemployment rate's long-term uptrend also implies that mistakes are going to be too low. After all, the unemployment rate is likely to be over 6.0% by late spring this year. The U.S. Feb. unemployment rate will be released Friday at 8:30 a.m. EST. The January unemployment rate was 5.6%. An increase from 5.6% to 5.7% sounds relatively benign perhaps, but the charts show that the rate can move appreciably higher. That's because the economic context is more than two years of rising unemployment. In the last three quarters of 2000 the unemployment rate formed a solid base of support at 3.9%. The highest reading for the unemployment rate's subsequent sharp uptrend is 5.8% recorded last December. But the uptrend points at target resistance of at least 5.9% or else 6.2%. It's likely that the 6.2% resistance will be tested in April or in May. That implies that if the February unemployment rate comes in above expectations it will be 5.8% or 5.9%. The unemployment rate's lowest reading will probably be unchanged. To try out the new Charting Markets weekly technical newsletter go to djnewswires.com For more technical analysis see: Dow Jones Newswires, N/DJTA; Telerate, page 4247; Bloomberg, NI DJTA; and Reuters key word search "Charting Markets." -By Stephen Cox; Dow Jones Newswires, 201-938-2064; stephen.cox@dowjones.com (Stephen Cox, a chartered market technician, is chief technician for Dow Jones Newswires.) Data by Commodity Research Bureau (END) DOW JONES NEWS 03-05-02 10:40 AM